Which of the Following Steps Is Not Relevant When Valuing

question 4

Multiple Choice

Which of the following steps is not relevant when valuing liabilities:

• A) The particular liability that is the subject of the measurement.
• B) The valuation premise that is appropriate for the measurement.
• C) The principal (or most advantageous) market for the liability.
• D) The valuation technique(s) appropriate for the measurement, considering the availability of data with which to develop inputs that represent the assumptions that market participants would use when pricing the asset or liability and the level of the fair value hierarchy within which the inputs are categorised.

---

Definitions:

Liability

A legal responsibility or obligation that may result in financial loss.

General Power of Attorney

A legal document that grants broad authorizations to a person to act on another's behalf in a wide range of legal and financial issues.

Principal

The primary party involved in a transaction or agreement, especially in finance, law, or education, or the amount of money on which interest is paid or received.

All Business

The term "all business" generally implies a focus on practical and effective actions, often with a serious or determined approach to work or tasks.